Correlation Between Wuhan Yangtze and Keda Clean
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By analyzing existing cross correlation between Wuhan Yangtze Communication and Keda Clean Energy, you can compare the effects of market volatilities on Wuhan Yangtze and Keda Clean and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Wuhan Yangtze with a short position of Keda Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Keda Clean.
Diversification Opportunities for Wuhan Yangtze and Keda Clean
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Wuhan and Keda is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and Keda Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keda Clean Energy and Wuhan Yangtze is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Wuhan Yangtze Communication are associated (or correlated) with Keda Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keda Clean Energy has no effect on the direction of Wuhan Yangtze i.e., Wuhan Yangtze and Keda Clean go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Keda Clean
Assuming the 90 days trading horizon Wuhan Yangtze is expected to generate 13.19 times less return on investment than Keda Clean. In addition to that, Wuhan Yangtze is 2.37 times more volatile than Keda Clean Energy. It trades about 0.0 of its total potential returns per unit of risk. Keda Clean Energy is currently generating about 0.14 per unit of volatility. If you would invest 780.00 in Keda Clean Energy on November 1, 2024 and sell it today you would earn a total of 30.00 from holding Keda Clean Energy or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Keda Clean Energy
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Keda Clean Energy |
Wuhan Yangtze and Keda Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Keda Clean
The main advantage of trading using opposite Wuhan Yangtze and Keda Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze position performs unexpectedly, Keda Clean can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Keda Clean will offset losses from the drop in Keda Clean's long position.| Wuhan Yangtze vs. Jiaozuo Wanfang Aluminum | Wuhan Yangtze vs. Nanjing Putian Telecommunications | Wuhan Yangtze vs. Sino Platinum Metals Co | Wuhan Yangtze vs. Jilin Jlu Communication |
| Keda Clean vs. Shuhua Sports Co | Keda Clean vs. Allwin Telecommunication Co | Keda Clean vs. TianJin 712 Communication | Keda Clean vs. Wuhan Yangtze Communication |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stocks Directory module to find actively traded stocks across global markets.
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